Moving Forward in Uncertain Times
As we enter a new quarter and a new normal, I want to reflect on the current state of affairs in our community and economy, while sharing how Petros and the C-PACE industry are charging forward.
First and foremost, the health and safety of our customers, employees, transaction partners and their families are our top priorities. We have protocols in place allowing us to continue to operate safely and effectively and you should not see any disruption in service.
We are here to help by deploying C-PACE loans to bolster capital stacks that may come under stress or experience shortfalls in the near-term. Our lending approach and underwriting standards remain unchanged.
During these uncertain times, we are moving forward at full speed and will continue to work diligently to meet the financing needs of the clients we serve. Petros is seeing an increase in applications for retroactive financing, which can help commercial property owners and developers shore up capital stacks and access liquidity at any point in the economic cycle, but becomes especially beneficial during periods of capital market constriction.
In some states, projects that have completed construction in the past 12-36 months can secure retroactive C-PACE financing for efficiency measures to replace higher cost debt or equity with low-cost, long-term funding to generate liquidity, lower annual payment obligations, and defer payments for up to two years.
Petros has funded retroactive C-PACE projects of varying sizes across the U.S., including a recent transaction providing $9.9 million in C-PACE funding for a hotel in New York. Visit our website to learn more about retroactive C-PACE financing eligibility.
While it’s still too early to know what the long-term effects of COVID-19 will be, Petros is well-positioned to continue building on the progress we’ve made so far in growing the C-PACE market. Since the beginning of this year, we’ve entered two new states, with the first C-PACE deals in Oklahoma and the largest C-PACE deal to date in New York state. We announced our seventh privately rated securitization in February and plan more securitizations this year to accommodate the rapid growth in the volume of our business. Demand for C-PACE financing from Petros is up 10-fold from just two years ago.
Overall, the C-PACE market is not experiencing the same extreme squeeze as other areas of the capital markets. C-PACE financing is built to perform well in a downturn, as a lower-cost alternative to other sources of capital that can be utilized for a wide variety of projects to boost equity returns, free up capital or generate cash flow – all while incentivizing sustainable building improvements that help communities meet their clean energy goals.
As we go forward, we’ll be sure to keep everyone updated. In times like these, we remain focused on the well-being of our customers and employees. We hope that you and your family stay safe and healthy. Meanwhile, our firm also remains committed to the success of our clients and the C-PACE industry. We are grateful for all our customers and partners and look forward to chart a path forward together to continue to deliver on the promise of C-PACE as a game-changing tool for sustainable development finance, even in these unprecedented times.
We WILL get through this!
CEO, Petros PACE Finance